Former Merrill Lynch Executive's Fraud Case Appeal Is Refused
WASHINGTON — The Supreme Court refused yesterday to review a former Merrill Lynch executive's convictions for perjury and obstruction of justice in connection with fraud by the former energy giant Enron Corp.
The 5th U.S. Circuit Court of Appeals threw out some convictions against James Brown and other Merrill Lynch executives, but sustained Brown's perjury and obstruction convictions.
The defendants were prosecuted for their role in the sham sale in 1999 of power barges anchored off the coast of Nigeria. The deal was struck to make the earnings of Enron's energy division appear larger. The justices did not comment in denying Brown's appeal.
Federal prosecutors plan to retry Brown and the others on the counts that were overturned.
The case is Brown v. U.S., 06–975.
